Important trends in the industry this week:
5g users of the three major operators have rapidly penetrated, 654000 5g base stations have been added in 21 years, and the industrial Internet application and industrial chain have gradually matured.
The three major operators successively disclosed the operation data in December. In 2021, the overall number of users of operators increased steadily, and the increment of 5g users was large. The total number of 5g users of the three operators in the core 21 years reached about 730 million, accounting for 44.2% of the total mobile users, and the upgrading of 5g users was promoted rapidly.
According to the data of the Ministry of industry and information technology, the annual telecom business revenue reached 1.47 trillion yuan in 2021, with a year-on-year increase of 8% and a year-on-year increase of 4.4 percentage points. In the whole year of 21, the number of 5g base stations increased to 654000, and the gigabit optical network covered 300 million households. The “5g + industrial Internet” has formed 20 typical application scenarios such as remote equipment control and machine vision quality inspection in 10 key industries such as mining, steel and electric power.
In the future, with the rapid development of 5g users and applications, 5g new infrastructure construction is expected to continue to advance. The industrial Internet industry chain continues to mature, and 5g + industrial Internet is expected to gradually enter the stage of scale promotion. Investment view this week:
Looking forward to 2022, we will focus on the track of high prosperity and the target of low / undervalued value + reversal logic. Recently, we will enter the stage of intensive disclosure of performance forecast, focusing on the target of exceeding the expectation in the annual report / first quarter report, as well as the high-quality target of matching valuation and performance growth. Key focus: applications in subdivided fields such as communication + energy storage / new energy, Internet of things / Internet of vehicles, cloud computing and industrial Internet have entered the stage of accelerated development, and the growth logic is clear. In the medium and long term, we will continue to pay attention to high boom segments with strong performance certainty. It is suggested to pay attention to: Internet of things / smart car, optical fiber cable / submarine cable, military communication, main equipment, video conference, IDC, operators, etc
I. 5g network:
1. Main equipment supplier: key recommendation: Zte Corporation(000063) ;
2. Optical fiber and optical cable: key recommendations: Jiangsu Zhongtian Technology Co.Ltd(600522) (the marine and new energy sectors have full potential, and the business cycle of optical fiber and optical cable is opened), Hengtong Optic-Electric Co.Ltd(600487) (dual drive of marine + optical fiber and optical cable), Jiangsu Etern Company Limited(600105) (optical communication recovers, and the automobile harness opens the incremental space). It is suggested to pay attention to: Yangtze Optical Fibre And Cable Joint Stock Limited Company(601869) (the volume and price of optical fiber and optical cable rise simultaneously);
3. Optical module & optical device: Zhongji Innolight Co.Ltd(300308) (global digital communication optical module leader), Eoptolink Technology Inc.Ltd(300502) , Suzhou Tfc Optical Communication Co.Ltd(300394) , Accelink Technologies Co.Ltd(002281) , Broadex Technologies Co.Ltd(300548) , Advanced Fiber Resources (Zhuhai) Ltd(300620) , Hebei Sinopack Electronic Technology Co.Ltd(003031) , T&S Communications Co.Ltd(300570) , Cig Shanghai Co.Ltd(603083) ;
II. 5g application end (Automotive intelligence, etc.):
1. Internet of things / Internet of vehicles: key recommendations: Skyworth Digital Co.Ltd(000810) (Intelligent cockpit + metauniverse VR, combined coverage of household appliances), Shenzhen Topband Co.Ltd(002139) (intelligent controller + energy storage), Fibocom Wireless Inc(300638) , Hanwei Electronics Group Corporation(300007) (combined coverage of machinery), Queclink Wireless Solutions Co.Ltd(300590) , Quectel Wireless Solutions Co.Ltd(603236) , Willfar Information Technology Co.Ltd(688100) (combined coverage of machinery), Meig Smart Technology Co.Ltd(002881) , Cubic Sensor And Instrument Co.Ltd(688665) (combined coverage of machinery); It is suggested to pay attention to: Huagong Tech Company Limited(000988) (on-board sensing capacity), Shenzhen Neoway Technology Co.Ltd(688159) , Beijing Inhand Networks Technology Co.Ltd(688080) , Wenzhou Yihua Connector Co.Ltd(002897) (vehicle connector + photovoltaic), Dongguan Dingtong Precision Metal Co.Ltd(688668) , Suzhou Recodeal Interconnect System Co.Ltd(688800) , Hangzhou Hopechart Iot Technology Co.Ltd(688288) ;
2. Online office / video conference: key recommendations: Yealink Network Technology Co.Ltd(300628) (UC terminal solution leader, continuous improvement of product matrix), Fujian Star-Net Communication Co.Ltd(002396) (cloud office / cloud desktop, video conference), Montnets Cloud Technology Group Co.Ltd(002123) (rich media SMS leader), Bizconf Telecom Co.Ltd(300578) (video conference software and hardware layout), etc;
3. Operators: China Mobile, China Telecom Corporation Limited(601728) , China United Network Communications Limited(600050) ;
III. communication + energy:
1. Sea breeze submarine cable: Jiangsu Zhongtian Technology Co.Ltd(600522) (the potential of ocean and new energy sector is full, and the business cycle of optical fiber and cable is started), Hengtong Optic-Electric Co.Ltd(600487) (sea breeze + optical fiber and cable dual drive);
2. IDC: key recommendations: Kehua Data Co.Ltd(002335) (joint coverage of power and new technology), Runjian Co.Ltd(002929) (leading private communication network management and maintenance, key breakthroughs in photovoltaic operation and maintenance), Beijing Sinnet Technology Co.Ltd(300383) . It is suggested to pay attention to: Unisplendour Corporation Limited(000938) , Shenzhen Envicool Technology Co.Ltd(002837) , Guangdong Aofei Data Technology Co.Ltd(300738) , Beijing Highlander Digital Technology Co.Ltd(300065) (UDC), Shanghai Athub Co.Ltd(603881) ;
IV. military communication & Beidou: communication is a serious weakness in the field of national defense informatization. The penetration rate of ultrashort wave and area width can be improved. It is suggested to pay attention to: Guangzhou Haige Communications Group Incorporated Company(002465) , Tianjin 712 Communication & Broadcasting Co.Ltd(603712) , Jushri Technologies Inc(300762) , Shanghai Huace Navigation Technology Ltd(300627) ;
V. digital RMB: with the continuous promotion of digital RMB, large-scale application can be expected in the future. It is suggested to pay attention to: Chutian Dragon Co.Ltd(003040) , Eastcompeace Technology Co.Ltd(002017) .
Risk warning: the impact of the epidemic, the progress of 5g industry and commerce are lower than expected, the speed of downstream application recommendation is lower than expected, and the risk of trade war is uncertain.
